Let us check the market. There was downbeat data, that cast a shadow over the economic outlook. Thus, on Friday, the United States dollar held tight ranges. Nevertheless, it was set for a weekly loss against significant counterparts. Meanwhile, positive comments from the finance minister of New Zealand helped prop up the New Zealand dollar.
This week, on Thursday, the Federal Reserve upgraded its 2020 economic forecast to trade in negative territory. Thus, after that, the United States dollar gave up gains. Against a basket of major currencies, Dollar was last quoted at 92.923. The greenback was on track for a 0.3% weekly loss.
On Thursday, the Federal Reserve said that the United States economy would most probably shrink by far less than previously estimated in 2020. Moreover, they promised to keep rates ultra-low for an extended period.
After hitting a seven-week high at 104.52 on Thursday, against the yen, the United States dollar was little changed at 104.81. against the Japanese currency, the United States dollar fell more than 1.2% for the week. Since mid-June, it has set for the biggest fall.
Dollar and Others
The yen hovered near the 1-1/2 month high of 123.29 touched overnight against the euro. It changed hands at 124.18.
Masafumi Yamamoto works at Mizuho Securities. He is a chief currency strategist there. So, Yamamoto said overnight the dollar/yen dropped almost too much. Nevertheless, since Monday, it has been falling anyway.
Moreover, Yamamoto added that losses in the United States stock futures were contributing to a weaker United States dollar.
In Asia, markets held tight ranges. Nevertheless, the New Zealand dollar hit a two-week high of $0.6785. It happened after Finance Minister Grant Robertson sounded optimistic concerning the recovery prospects of the economy in television interviews.
All four New Zealand banks are forecasting to see negative rates in 2021. Nevertheless, economic improvements might state the negative qualities.
That is the current news of the market.